In 2019, 36% of the nation’s 122.8 million households were made up of renters. This means all those people are responsible for paying rent to a landlord.
Hopefully, they pay their rent on time and the landlord actually has found quality tenants.
As a landlord, that can be one of your biggest worries, finding quality tenants. What tenant evaluation tools do successful landlords use?
In addition to the tenant application, what tenant screening should a landlord do to make sure they find the best quality tenants. Read on to learn more.
1. Financial Information
One of the first things you want to know is if the potential tenant has the financial resources and financial responsibility to be a good tenant.
You will want to ask the tenant in the application to sign a release so you can pull their credit report and get a credit score. You want to look at how they've handled money in the past. How often do they pay their bills late or not at all?
You'll want to look at other expenses to see if they can actually afford the rental.
2. Rental History
You want to check to see what rental property they have previously lived in. While you might ask for the name and contact information of the previous tenant, you also want to take the time to check with the previous landlord. Ask:
- Did they pay their rent on time?
- Were they quality tenants?
- Were there ever complaints associated with them?
- What condition did they leave the property in when they left?
There really isn't anyone who can speak to what kind of tenant they will be than the person who has already rented from them. While it might take some extra leg work to talk to the previous tenants, it can provide you with worthwhile information.
3. Criminal History
It's also beneficial to run a criminal background check on potential renters. Remember, you cannot opt to not rent to someone because of an arrest. You can only base a rental on convictions.
Also, remember everyone deserves a second chance. If the tenant has a job and good references, don't automatically choose to not rent to them because of something criminal that happened in the past. People deserve a second chance.
4. Employment Check
Finally, you will want to learn about the employment of your potential renter. Go beyond do they have a job. You want to learn how much they actually make at their job. Can they afford the rental unit based on this employment?
Consider how long they have been at the job and even ask to talk to the renter's supervisor to get a feeling about how they act as an employee and how stable their employment is.
As a landlord, you need to know they can afford to live in your rental unit.
Tenant Evaluation Tips to Find the Best Renters for Your Units
The steps in a tenant evaluation may slow you down in getting a renter, but in the end, these steps help to ensure getting a quality renter.
If you have a Raleigh property and need help managing it, we can help. Contact us today to get more information about our property management services.